Ask Question
BusinessBusiness
19 November, 02:34

Which of the following is an example of an expansionary fiscal policy?

A. A decrease in government spending.

B. A decrease in taxes.

C. An increase in investment spending.

D. An increase in the money supply.

+1
Answers (1)
  1. 19 November, 05:18
    0
    Option (B) is correct.

    Explanation:

    Fiscal policy and monetary policy are the policies which can be used by the government of a nation and the central bank of a nation.

    Fiscal policy will be used by the government to change the aggregate demand in the economy.

    Expansionary fiscal policy includes:

    (i) Decrease in taxes

    (ii) Increase in government spending

    Decrease in taxes will increase the disposable income of an individual, so this will lead to an increase in the aggregate demand in an economy.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is an example of an expansionary fiscal policy? A. A decrease in government spending. B. A decrease in taxes. C. An ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
You are in the market for a new refrigerator for your company's lounge, and you have narrowed the search down to two models. The energy-efficient model sells for $1700 and will save you $45 at the end of each of the next five years.
Answers (1)
If a company has 5 employees with annual salaries of $90000 $60000 $70000 $90000 and $20000 respectively what is the mean annual salary at the company $90000 $66000 $55000 $70000
Answers (2)
Why is it important not to form cliques with friends or ignore or leave out team members that you are not close to personally? A. This behavior can create divisions on the team. B. Everyone on a team must be good friends. C.
Answers (2)
Products manufactures faux boulders to be used in various landscaping applications. A special resin is used to make the boulders. The standard quantity of resin used for each boulder is 2 pounds. Mitchell Products uses a standard cost of $ 1.
Answers (1)
For each of the following businesses. what is the likely fixed factor of production that defines the short run? a. Golf courseb. Movie theaterc. Law officed. Brewerye. Amusement park
Answers (1)
New Questions in Business
What does it mean to be concise in business writing? A. to use facts that readers can easily verify B. to use language that impresses readers C. to use fewer words to clearly convey ideas D. to use reliable sources to present information
Answers (1)
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar's equipment (10-year remaining life) has a book value of $420,000 but a fair value of $520,000.
Answers (1)
On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale.
Answers (1)
Leading economic indicators are: A. the most popular economic statistics. B. data that are used to construct the consumer price index and the unemployment rate. C. variables that tend to fluctuate in advance of the overall economy. D.
Answers (1)
Is ged the same as graduating high school?
Answers (1)
Home » Business » Which of the following is an example of an expansionary fiscal policy? A. A decrease in government spending. B. A decrease in taxes. C. An increase in investment spending. D. An increase in the money supply.
Sign Up Forgot Password?